Moody's Investors Service said it has upgraded to Aa3 from A1 the rating on Big Spring School District, Pa.'s $8.8 million in outstanding general obligation debt.
The bonds are secured by the district's general obligation unlimited tax pledge as debt service is exempt from the commonwealth of Pennsylvania's Taxpayer Relief Act, also known as Act 1.
The upgrade to Aa3 reflects the school district's strong financial position due to consecutive surpluses, stable tax base and average debt burden.
Strengths include strong reserve levels and manageable debt burden.
Challenges include small tax base with average wealth levels.
What could make the rating go up: significant tax base growth or a sSignificant increase in reserves.
What could make the rating go down: declines in reserves.
